A.M. Best has assigned a financial strength rating of A- (Excellent) and a long-term issuer credit rating of “a-” to LOTS Reassurance Company, based in Turks and Caicos. The outlook assigned to these credit ratings is stable.
A.M. Best has categorised LOTS Re’s balance sheet strength as adequate, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
LOTS Re’s ratings benefit from the support of its parent, Fortegra Financial Corporation (FFC).
LOTS Re is a Turks and Caicos-incorporated subsidiary of FFC, a US insurance group specialising in credit and warranty business.
As of late 2018, LOTS Re’s adequate balance sheet assessment reflects the organisation’s strong risk-adjusted capitalisation, as measured by best’s capital adequacy ratio.
Also contributing to the balance sheet assessment is the company’s diverse blend of fixed income securities, equity holdings, BA assets, and other investments, as well as its stable loss reserving trends as a captive reinsurer for Fortegra since 2016.
A.M. Best assessed the company's operating performance is adequate due to its profitable operating results since becoming a captive reinsurer of Fortegra, and reasonable performance projections through 2020.
A.M. Best said it considers FFC to have “satisfactorily demonstrated its willingness to provide capital to its subsidiaries whenever necessary and expects that willingness to continue”.
